According to the law firm press release, Corinthian is a publicly traded, for-profit education company headquartered in Santa Ana, CA. Corinthian operates a total of 105 campuses in 25 States, along with an online division, and offers diploma and degree programs in health care, business, criminal justice, transportation technology and maintenance, construction trades, and information technology. Approximately 34 percent of Corinthian students are enrolled online, and 64 percent are enrolled in diploma (non-degree) programs.
The Complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the Company’s business, operational and compliance policies. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) defendants manipulated federal student loan and grant programs in order to appear to be in compliance with new federal regulations enacted in June 2011; (ii) defendants’ predatory and deceptive recruiting and enrollment practices violated federal regulations enacted beginning in June 2011; and (iii) the Company engaged in systemic grade falsification at the Company’s campuses in order to appear to be in conformance with the new regulations enacted beginning in 2011.
On June 10, 2013, the Company disclosed that the SEC was conducting an investigation into the Company, and that the SEC has requested documents and communications related to student recruitment, attendance, completion, placement, and defaults on loans, along with information on other corporate and financial matters. On this news, Corinthian securities declined $0.32 per share or nearly 11.47%, to close at $2.47 per share on June 11, 2013.
On September 6, 2013, the Court issued an Order appointing lead plaintiff and approving lead counsel.
On October 1, 2013, this action was transferred to the Central District of California.
On April 4, 2016, the parties filed a Stipulation of Settlement. This Settlement was preliminarily approved by the Court on May 25. The Settlement was granted final approval on November 9, and this case was dismissed.